Eicher Motors share price declined over 1 percent intraday on February 4 after research house Citi downgraded the stock to neutral from buy and also cut the target price to Rs 21,800 from Rs 25,600 per share.
According to Citi, the recent volume trajectory and tepid demand leads it to trim volume and margin expectations.
The research house believes that RE will continue to dominate the premium cruiser segment.
“Our thesis of long-term premiumisation stays and do not expect a sharp pick-up in volumes over the near term,” said Citi.
The downgrade is on the absence of sufficient upsides and uncertainty over BS-VI platforms, it added.
The company’s sales for the month of January 2020 fell 13 percent at 63,520 units against 72,701 vehicles in January 2019.
At 1143 hours, Eicher Motors was quoting at Rs 19,689.65, down Rs 233.75, or 1.17 percent on the BSE.
News Source:- Moneycontrol